(Yicai) Oct. 24 -- Sunstone Development’s shares rose after the Chinese producer of pre-baked carbon anodes said it signed a major supply deal with three overseas units of Alcoa, the largest aluminum producer in the United States.

Sunstone [SHA: 603612] closed up 4.3 percent at CNY13.33 (USD1.87) per share in Shanghai today, after soaring by as much as 10 percent earlier.

Three Alcoa subsidiaries, two based in Canada and one in Spain, will purchase around 240,000 tons of pre-baked anode products from Sunstone throughout next year, the Beijing-headquartered company announced yesterday.

Pre-baked anodes are mainly used as raw material for the anodes in aluminum electrolytic cells. They are made by binding petroleum coke and pitch coke together with coal-tar pitch.

The deal will help Sunstone enhance its influence in overseas markets and deepen multi-layered cooperation with high-quality international customers, the firm pointed out.

Sunstone produced nearly 1.57 million tons of pre-baked anodes in the first half of the year, accounting for 14 percent of China’s total, according to the company’s financial statement for the period. Its annual output capacity was 3.16 million tons as of June 30 and is expected to reach 3.46 tons by the end of the year.

Sunstone is also a major exporter. In the first half, it shipped out 393,700 tons of pre-baked anodes, up nearly 36 percent on a year ago and accounting for 38 percent of China’s total.

To further hike capacity and its presence in overseas markets, Sunstone unveiled a plan last month to invest CNY1 billion (USD140.5 million) for 55 percent of a joint venture that will build a pre-baked anode plant with an annual output of 300,000 tons. It will be built in Qidong, on the estuary of the Yangtze River, which is known for its convenient maritime transport network.

Sunstone released an update about the JV plant yesterday, revealing that the company has signed the project investment contract with its partner.

Editor: Futura Costaglione